SENATE BILL REPORT

                   SB 5726

                      As of March 1, 1999

Title:  An act relating to notice requirements of general or specialty contractors.

Brief Description:  Changing provisions relating to notice requirements of general or specialty contractors.

Sponsors:  Senators Wojahn, Hochstatter and Benton.

Brief History:

Committee Activity:  Labor & Workforce Development:  3/2/99.

SENATE COMMITTEE ON LABOR & WORKFORCE DEVELOPMENT

Staff:  Jack Brummel (786-7428)

Background:  Contractors are required to register with the Department of Labor and Industries and may not sue for payment on work done unless they are registered.  Contractors working for more than $1,000 on four or fewer residential units or for more than $1,000 but less than $60,000 on a single commercial building must provide notice to the customer that: (1) the contractor is registered with the department; (2) a bond or cash deposit has been posted which may not be sufficient to satisfy a claim arising from the contracted work; (3) the property may be liened; and (4) the customer may request lien release documents.  Contractors that fail to provide the required notice may not bring or maintain a lien on the improved property.

Summary of Bill:  In addition to the information about registration, the availability of a bond and the possibility of a lien, the notice to customer must state that the customer wishing additional protection should consider:  (1) requesting lien release documents; (2) employing construction contract control experts; (3) requiring a performance bond to guarantee payment; (4) employing the services of an attorney or other construction professional; (5) entering into a joint check arrangement to insure payments; and (6) withholding a percentage of the contract amount to insure project completion.  The notice also states that the customer may request a summary sheet about the contractor.

Contractors may not sue for payment on work done unless they have complied with the notice requirement.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.